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European heating has always been a mixed industry.

Now, technological varieties are compounding regional preferences to further diversify the markets.

It may be the biggest single market for heating appliances, but Europe’s heating market has always been as diverse as its

Junkers, part of the Buderus Thermotechnik (BBT) group, is a leader in instantaneous water heaters. The company’s premium Celsius Plus model allows users to change water temperature while showering by using a waterproof remote control.

climates and cultures. Traditional floor-standing boilers, which heated many European households for decades, are being replaced by newgeneration products that are increasingly energy efficient and even stylish in design. Condenser technology penetration is growing, and more Europeans are finding it economical to clear up floor space by installing a wall-hung boiler. Heat pump use is growing. Solid fuel users, paying half the fuel costs of other users, are finding themselves at a major advantage. Even solar panels are moving into the realm of affordability and practicality for European

consumers. One question much on the mind of Mostra attendees was how manufacturers can conquer the Italian market with a high-end product portfolio. as well as a important heating appliance manufacturing hub. taps and fittings.5 billion euros (approx. U. $10.6 billion euros (approx. Figures from ANIMA (Federation of Italian Associations of Mechanical. Included in this total.1 percent in 2005.S. $3. but the success of the growing trade show mirrors the growth of the European heating industry. Attendees at the Milan show are clearly focused on Italy.6 billion euros (approx. $5. Engineering and Related Industries) show total 2005 revenues of Italian production of air-conditioners.2 billion). That includes strong exports of approximately 4. Italy is a strong market for heating. and water treatment will be about 8. heating appliances and system components registered growth of 3.7 billion). Increases are also expected in 2006.8 billion). heating appliances. with a 4.4percent increase in exports over 2004 and expected turnover of around 2. in the temperate Mediterranean and even chillier Scandinavian markets The Industry Grows Mostra Convegno is the place to go to evaluate the European industry. Claudio . pumps and valves.

boilers and household appliances. In the global marketplace. Not everything is produced by Buderus itself because we put the integration first. we have five divisions all over Italy. To provide this service.” MTS Group. and everything is integrated. formerly Merloni Termo-Sanitari. Buderus has a very wide product range. which includes German burner maker Elco Klöckner. MTS is a mass producer under the Merloni brand. It is said to supply all the world’s major producers. and that is the difference with the Italian mass producers. the Thermowatt subsidiary is a leading manufacturer of electric and electronic components for water heaters. has been . which do have a cost advantage. The French operations of Chaffoteaux & Maury have been integrated in the Group. had the largest presence at Mostra. says his company does not sell to wholesalers.” he says. “We emphasize the high technological level of our products and the great service we can deliver. with annual production exceeding 30 million units.Guerreschi. adding substantially to the revenue. Swiss subsidiary Elco. but to installers. We are a systems supplier. “We do a lot of business with planners for medium or large projects. In Italy. marketing coordinator for Buderus Italy. MTS has been working on European expansion in recent years. like many competitors.

product manager of boilers for Elco.” Kempkes tells APPLIANCE. “We focus as much on support for heating planners and extensive aftersales support. which came into .reorganized in recent years. much like that of competitors Buderus and Viesmann. industrial solutions and solar products. The Market In Europe Bosch-Buderus Thermotechnik (BBT). Because we have 800 service centers all over Europe. combining with other business units to form Elco Heating Solutions.” notes Bernd Kempkes. It has a full-service strategy. “We are convinced that we have the best full-service concept in the market. and plans to build brand recognition in China through promotions during the upcoming Olympics. we can offer a 2-hour service. independent from the Merloni organization. including domestic boilers.” Elco is also focusing on the Russian market. “There are always customers willing to pay for a complete and energy-efficient solution. “We offer all capacities up to 50 kW and are oriented toward the Germanic countries. Even in Italy we are developing this full-service concept. Elco provides a complete high-end product line. as well as selling the hardware itself. and that we can be successful all over the world. with premium products.

2 billion) each. $30 billion) in 2005.1 billion euros (approx. attracted much attention during the Milan trade show with its recent “Market Report Energy Use” report. and Weishaupt (Germany). $3. BBT estimates the world heating market at 24 billion euros (approx. Europe is the largest market for the industry. $12. $1. $622 million) in revenues: Riello and Ferroli (Italy).6 billion euros (approx.9 billion). Remeha/De Dietrich (Holland). 250 of which operate only regionally. representing 42 percent or 10.6 billion). BBT estimates Viessmann (Germany). A group of five companies all have around 500 million euros (approx.2 billion) in revenue.S. Second in line is Vaillant. and alternative energy products like solar equipment and heat pumps account for 11 .5 billion euros (approx. MTS (Italy) and Baxi (United Kingdom) come in third. Domestic hot water (DHW) heaters represent 24 percent of the sector. $1. Atlantic (France). with 2. followed by Asia at 29 percent and the U. The report says there are more than 350 heating brands in the European market. Heating systems (including combi boilers) account for 65 percent of European revenues. BBT claims it is the largest European company. at 26 percent. with revenues around 1 billion euros (approx. at approximately 1.existence as a result of the 2003 merger of Robert Bosch GmbH and Buderus.

7 million. The Swedish market continues to lead in heat pumps. In terms of wall-hung boilers. Spain leads in DHW heaters with 0. Some believe this is because of new United Kingdom regulations that seem to favor condenser systems.7 million units. By country.000 units and Germany with 20. and solid fuel costs are about half of gas and oil.8 million. Italy sold 1. the United Kingdom sold 1.000). and condenser products were up from 12 percent to 17 percent. followed by Russia.6 million were wallhung. France sold 0. The trend for this sector is the replacement of separate DHW boilers with combi boilers. with the technology representing 100 percent and 89 percent of sales. of which 5. where gas prices have soared.3 million. and Russia sold 0.5 million units. respectively. with . Total industry sales are 345. condenser products totaled 7.65 million.percent.000 units. Other big markets include France with 24.000. open-flue products were down from 28 percent to 23 percent.000 units) of the total European unit sales (160.8 million. Portugal and Italy. Solid-fuel burners are popular in Middle and Eastern Europe. condenser units dominate the markets in Switzerland and Holland. Germany sold 0. The country has a 38-percent share (63. One recent industry trend is the growth of condenser technology. In 2005. According to BBT.

000 euros (approx. U.000 units at an average of 755 euros (approx$939) per unit • Germany: 641. Sweden and Austria: average value of more than 1. $1.S. . $1.260 euros (approx. Several Mostra Convegno conferences were dedicated to energy-efficient building techniques.244) per unit Green Building In Europe Energy efficiency efforts extend into the European construction industry. $1. revealing interesting national contrasts.568) per unit • Finland: 13. • Italy: 2.000 units at an average of 1.817) per unit • Denmark.000 units produced at an average value of about 505 euros (approx. $628) per unit • France: 942.00 units at an average value of 1.460 euros (approx.S. With an initial cost increase of just 2 percent to 4 percent and using existing technology.Poland leading at 21 percent of sales and the Czech Republic following at 12 percent. U.322. Central Heating Boiler Contrasts An industry report from Dutch research firm VHK uses 2002 data to compare unit production and monetary value of central heating boilers in different countries of Europe. buildings can be constructed to achieve energy savings up to 60 percent.

the integration of environmental considerations at the design phase. .” Bianchini explains. More importantly. However. is the best way to improve the environmental performance of products. “In Italy we use the same technology that we export to Romania because there are no controls and the regulations are complicated. The EC states that ecodesign. The EC project focuses on uniform rules for eco-design. Even so. which allows for a fair comparison of products with uniform criteria. the Italian association of heating equipment manufacturers. but domestically it still uses basic technologies. he says that energy savings of up to 30 percent can be achieved by the more intelligent use of existing and known technologies. a coherent framework is needed to prevent uncoordinated measures. but some European markets make energy efficiency more difficult than it should be. president of Assotermica. resulting in an eco-label. One initiative aimed at saving energy is the European Commission’s (EC) Eco-Design Project. national or regional measures that limit competitiveness should be avoided. points out that Italy is the largest manufacturer and exporter of heating equipment in the world. Claudio Bianchini.The same philosophy can be applied to heating appliances.

including underneath. The G115 is a modified three-pass boiler engineered to achieve a high level of efficiency without leaving residue. . designed with large heat transfer areas. Low standby losses are achieved with the help of a 7. lowtemperature-adapted.5-cm (2. like this Logano G115 floor-standing oilfired combi boiler with a Logalux LT direct water heater tank.Solar Heat in Cold Climates Buderus offers a range of oilfired heating solutions.95-inch) layer of thermal insulation constructed around the unit’s entire block. The company makes boiler sections from special. flexible and corrosion-resistant GL180M cast iron sections. Combustion is optimized through the use of positive pressure-fired boilers and optimum chamber geometry without a heatconsuming refractory or target wall. Stack losses are minimized with the modified three-pass flue. Profiled and beveled steel push nipples are designed to ensure long leak-free life.

and a warmer climate in the Mediterranean means high efficiency levels aren’t needed. The product can therefore be made more affordable. Still. electricity provider EDF is promoting heat pumps heavily. “The Spanish market is moving faster toward innovation. we offer special medium-priced solar panels.” says Guerreschi of Buderus Italy. The design is less complex compared to the Elco panels. Southern Europe at heating components supplier Honeywell. There are less condensing boilers there. the variety of heating . even as Europe has merged its currency and lifted trade barriers between its member countries. Another industry trend is underfloor heating. “In France. which supplies high-efficiency solar panels using vacuum tubes.Solar panels are clearly in demand.” Other companies catering to the trend include Elco. MTS offers a new solar collector with integrated storage tank. field marketing manager.” The European heating appliances industry has consolidated steadily in recent decades.” he says. regional preferences continue to be strong market forces. according to Roberto Rossi. As fuel prices continue to drain the pockets of consumers. designed specifically for the Northern European climate. “For markets such as Italy and Spain. so sales have almost doubled.

Arif Habib Bank. PSO’s corporate vision extends to well beyond the realm of fuel. He further added that this agreement is part of the Bank's strategy to continuously provide its customers with the best services. Company’s ‘Non Fuel Retail’ (NFR) initiatives like ‘auto car wash’ project namely ‘Wash Express’. Deputy General Manager Non Fuel Retail.technologies in Europe will keep growing. Consumer Asset Head. Also present at the occasion were Mr. Mr Haider Rizvi. Mr. PSO. The Managing Director. Mavalvala. ATMs and ‘Self-service Banking Centers’ as well as the ‘Quick Service Restaurants’ in addition to its convenience stores called the ‘Shop Stop’. The document was signed at a ceremony at PSO House. Mr. Mr. Executive Director Finance & IT. Yacoob Suttar. Mr. PSO and AHB value their relationship with the customers and are striving hard to offer a variety of innovative Banking products and services to suit the needs of their customers through AHB's ATMs and Branchless Banking Centers at selected PSO Retail Outlets. Mr. and the drive to innovate will continue to run hot. Rustom H. and several other members of both the organizations. Kalim Ahmed Siddiqui highlighted PSO’s initiatives aimed at continuously delivering enhanced service to its customers and described the joint venture as futuristic and highly customer oriented. AHBL & PSO Strengthening Relationships Arif Habib Bank (AHB) and Pakistan State Oil (PSO) signed an agreement to place AHB's ATMs at selected PSO petrol pumps located throughout Pakistan. AHBL. AHB. Speaking on the occasion. Pakistan State Oil. PSO. Saleem Chamdia stated that Arif Habib Bank was looking forward to diversifying operations across Pakistan and saw PSO’s retail outlets as a convenient platform to proliferate its business. offer state-of-the-art facilities in terms of flexibility and convenience to the customers when they visit PSO’s forecourt. Saleem Chamdia represented their respective organizations. Chief Operating Officer. Mr. Kalim Ahmed Siddiqi and Executive Director. Kalim ur Rahman. .